Stock News Highlights
HCLTech (-1.61%): Stock declined despite the HCL Group’s ₹500 crore IT City expansion and HCLTech’s plan to train 1,000 UP students in AI under its LITMUS programme.
Godrej Consumer Products (-0.80%): Stock slipped despite the inauguration of its new manufacturing facility in Indonesia, with the company investing around ₹250 crore to boost its local production footprint.
Titan Company (-3.80%): Stock fell as investors focused on valuation concerns and profit-booking after robust Q2 updates, despite domestic business growing 22%, international business surging 97% and consumer business rising 25% YoY.
Kanohar Electricals (+15.76%): Stock advanced after Q1 profit surged 140% to ₹27.3 crore from ₹11.4 crore, while revenue jumped 103.5% to ₹137.1 crore from ₹67.4 crore YoY.
Sectoral Performance
Nifty PSU Bank (+1.00%): Sector gained the most today, supported by strong September business updates and robust credit growth, with PNB, Union Bank and Bank of Maharashtra leading gains. The RBI’s 25-bps repo rate hike to 5.5% further boosted banking sentiment.
Nifty Media (+0.69%): Sector gained today, supported by 3 stocks gaining and 7 stocks closing lower, reflecting selective buying despite mixed sectoral breadth.
Nifty Metal (-2.33%): Sector fell sharply as the most losses were seen in Hindalco, Adani Enterprises and JSW Steel, amid softer global metal prices and the RBI’s 25-bps repo rate hike to 5.5%.
Nifty Realty (-1.77%): Sector fell as higher borrowing costs weighed on sentiment, with 2 gainers & 8 among the major decliners after the RBI raised the repo rate to 5.5%.
Market Insights
Technical Level: Nifty opened with a gap-down opening and slipped further at the start. After the RBI’s interest-rate move, the index recovered and moved higher, facing resistance near 22,710. It then fell back, found support near 22,550, and moved slightly higher towards the close, but remained negative overall.
Advance-Decline Ratio: Market breadth remained negative, with 1,549 stocks advancing against 2,043 declining, resulting in an A/D ratio of 0.76, indicating broader selling pressure.
The Big Picture: The RBI raised the repo rate by 25 bps to 5.50%, its first hike since 2023, and shifted its stance to calibrated tightening as inflation risks increased. The RBI raised FY27 growth forecast to 7.1%, while flagging geopolitical tensions, elevated commodity prices and tightening financial conditions as key risks.
FII/DII Activity (October 06, 2026): Institutional flows remained mixed, with DIIs net buyers at ₹5,089 crore, while FIIs net sellers at ₹2,961 crore, indicating strong domestic buying despite continued foreign selling pressure.
Watch Out For Tomorrow
Market Watch: For investors, the RBI’s rate hike changes the near-term mood. Higher borrowing costs and persistent inflation could keep volatility elevated. Stay selective, focus on quality businesses, and don’t chase every dip until the market gets clarity on rates and growth.
Word of the day
Calibrated Tightening
Meaning: A gradual approach of raising interest rates to control inflation without aggressively slowing economic growth.
Market Context: The RBI shifted its stance from Neutral to Calibrated Tightening, signalling that further rate hikes remain possible if inflation stays elevated.